Stocks sink, snap two day rally; oil above $60 a barrel

A two-day rally snapped Tuesday as a combination of factors -- domestic and international -- weighed on investors, and oil rose above $60 a barrel for the first time in five months.

At the close on Wall Street, the Standard & Poor's 500 index was down 25 points, about 1.2 percent, at 2,089.5. The Dow Jones industrial average lost 142.2 points, about 0.8 percent, to 17,928.2. The Nasdaq composite gave up 77,6 points, about 1.6 percent, to 4,939.3.

As the markets closed, the U.S. benchmark crude oil price was up about 2.5 percent, at $60.43 a barrel in trading on the New York Mercantile Exchange. This is the highest it has been since December, and raises expectations for rising inflation and interest rates. Greece's government remained in a standoff with its European creditors as a debt payment looms next week.

"There are some jitters," said analyst Bill Stone, chief investment officer at PNC Asset Management Group. "Greece is definitely part of it. The other part is oil prices going up. That implies more inflation."

An impasse in talks between Greece and its lenders raised concerns about the country's ability to handle an upcoming debt payment. Greece will have to scrounge for cash to make a payment of $840 million to the International Monetary Fund due on May 12.

Among companies turning in results on Tuesday, Kellogg reported that its quarterly earnings slumped 44 percent as a rising U.S. dollar took a bite out of sales. The maker of Frosted Flakes and Pop Tarts fell 95 cents, or 1 percent, to $63.18.

Walt Disney's stock hit an all-time high after it delivered quarterly results that beat Wall Street's estimates, thanks, in part, to rising revenue from its Walt Disney World Resort and other theme parks. Last weekend, its "Avengers: Age of Ultron" had the second-biggest domestic opening behind the first "Avengers." Disney's stock gave up its early gain and ended the day slightly lower, down 22 cents at $110.81.